How Loan Management Companies Limit Risk and Boost Your Returns

The lending and loan management process is complex. To do it right, you must gather and verify a long list of data from multiple sources. This list includes borrower application and financials, appraisals, title reports, escrow instructions, legal disclosures and loan documents. Partnering with a neutral party who can share best practices and assist in uncovering red flags or errors, can make the process more transparent, clear and compliant. The cost for this help is usually free to the lender and broker; the cost for not asking for free help can have a significant impact on your time and finances.

For most lenders and private loan servicing companies, the goal to Private Lending is to obtain simple, pain-free, passive income. The chances of you achieving that goal increase dramatically if the loan is underwritten and managed properly. Prudent real estate investors don’t buy a house, throw some tenants in there and just sit back and collect rent. There is time spent on determining the right property and checking out potential tenants. Next, they implement a management process to protect their investment.

We believe the same amount of due diligence should be invested into the lending process. Like property managers do for your rental property, loan managers protect your dream of a simple, pain-free, passive income. The right steps taken, as early in the process as possible, provide the best chance for success. Value is added and potential problems are eliminated or minimized by delivering the following services:

Expert File Review: A neutral set of eyes looking for red flags and errors. We have assisted with over 10,000 loans from funding to payoff. We have also seen hundreds of borrower complaints that could have worked out better for all parties if a couple things were caught or implemented prior to funding.

Professional Loan Processing and Document Preparation: Efficiently working with the borrower, lender, broker, title, escrow, appraiser etc. is an art. The work performed by specialists not only gets done better and quicker, it also assists in uncovering potential problems. Our loan documents are attorney prepared and reviewed regularly. Our past experiences are also folded into our doc process and forms so that you benefit from the other people’s successes and challenges.

Continual Management Plan: Funding and closing the loan is the end of the road for most brokers who do not have an experienced team managing the loan’s post close needs. Collecting and tracking payments, answering borrower questions and overseeing property taxes, insurance and condition are just the basics. We work to develop rapport, maintain great communication with all parties and evaluate actions or conversations to anticipate or minimize potential problems.

Exploring the Best Solutions for Serious Delinquencies: We all tend to assume that the loan that looks so good on paper today could never go bad down the road. The fact is they do and they go bad for many different reasons. The groundwork laid along the life of the loan will have a huge impact on the path the problems will take. When things turn bad, the parties benefit from having someone neutral to talk to. Borrowers are much more likely to be open about challenges or problems before overreacting and lender’s emotions don’t hinder the process. Experienced companies can research, verify and mediate delinquency issues to find the best solutions available to all parties.

Keeping your money at work: To maximize their return, lenders should be aware of their borrower’s intentions far enough in advance to make solid business decisions. Getting paid back too soon can leave a lender hunting for an investment. Not receiving money as promised can cause a lender to default on a planned obligation, possibly causing problems with the broker left hanging for a lender. We work hard to find out what is “really” happening and keep lenders apprised.

Every step of the process, from origination of the loan through payoff, needs careful attention; this is serious stuff – one bad experience can take months to years to recover from. Cutting corners, especially if the services you need for peace of mind are at little or no cost to you, should never happen. When you have the right help, you greatly reduce your risk and stress over underwriting, property preservation, maintaining payment records or compliance issues. Your broker’s job is finding you quality investments. Your job is to get your investments as close to passive as possible.

Choosing a Loan Management Company

Since having the right partner is one of the most valuable tools available to you, choosing the right company will take a bit of work and should involve evaluating reputations, experience and value.

3 simple ways to find the right partner is to:

Ask for and contact their references AND research the references.

Determine if the company’s goals and values fit with yours.

Clarify your expectations and roles and get the plan in writing.

Get private loan help at Del Toro where we are proud to share our references. They are well-known and well-respected members of our industry. Additionally, we love to share our values and why they are important to us, our industry and our community. You can visit our website for more information on our references, values, and services.

Featured Testimonials

AAA Private Money has worked with Del Toro Loan Servicing for many years. We have found their responsiveness to be the best in the industry, and the quality of the work they do has always met or exceeded our expectations. We have formed lasting relationships with all of the staff and ownership and look forward to a long and prosperous relationship for many years to come.

Clinton Muhe

AAA Private Money, LLC

I appreciate your attention to detail in the discovery of the accounting miscalculation in my favor. Drew, you and your whole team represent the highest standards of integrity. It is very much appreciated. Again, a very heartfelt “Thank You” to you and the entire staff at Del Toro for all of the effort put forth on my behalf in order to bring this transaction to a successful conclusion.

Jim Feller

Double F Management, LLC

California Private Lenders has been working with Del Toro Loan Servicing for eight years now, and it has been a great experience. Not only do they have a great servicing department, but they also do all of our loan/lender documents. The customer service has been beyond spectacular. If you want to deal with an honest, competent and reliable servicing company that will put you as a priority, you can count on Del Toro.

Mike Christl

California Private Lenders President

During our two years working with Del Toro, we have always experienced outstanding customer service and professionalism. Leah Ecija, who handles our accounts, exudes professionalism in any situation. Del Toro always goes above and beyond the call of duty. Their positive attitude and cheerful disposition are an added bonus. It is a joy to work with them.

Joyce Cham

Woody Financial Realty Corporation

AJX Homes has worked with the Del Toro Loan Servicing team since 2010. We can’t say enough about how much they help make our flipping business run smoothly, from purchase to resale! Helping us quickly prepare and process loan documents for investors and escrow is the key to repeat business. We appreciate all the help Drew and his team have given us throughout the years.

Miguel A. Molina

AJX Homes LLC

I have reviewed the loan documents and, as usual, Del Toro (Katherine) has done an excellent job.

Dr. Stuart Weiss

Drew, Here’s to the man with the courage to fight, Here’s to the man, who did not let the bastards grind him down, I am grateful for all your efforts on my behalf, Here’s to the sweet smell of success.

James P. Feller

Double F Management Group, LLC

“Yes,” Pensco wanted the fully executed extension this morning and I had it! Both PS Modern and I have found you to be a wonderful person to help us. You have been positive and upbeat about making this easy for all of us! Thank you!

Howard Hyman

Fremont Bank

Catching 100 waves at the event reminded me of how powerful a community can be.

Just to share a little, I’m really proud that my ten person team raised $40,000!! That is enough to open two new schools this year.

The total event has raised $350,000 and donations are still coming in.

Sean Puckett

You guys are the absolute best!

Barbara Cuillo

Mortgage Securities

Recently, Sequoian Investments, Inc.’s success was recognized by the San Diego Business Journal as San Diego County’s Number One Fastest Growing Company for 2016- a list which represents companies in every sector of San Diego’s business community.

One of the ways we maximized our success was to strategically align ourselves with industry experts who share the same values of our company. One of those companies is Del Toro Loan Servicing, Inc.

Del Toro’s ability to tailor services to our specific needs (Loan Processing, Doc Drafting and Servicing) not only helped us achieve the success we’ve experienced, but also landed Del Toro in ranks of the “Fastest Growing Companies” San Diego as well.

We consider Del Toro a valued partner and we highly recommend anyone In the industry consider them as their primary resource or as a backup partner when your workload demands it.

Alexander Pellegrino

Sequoian Investments, Inc.

Our payoff that was short more than $9,000. Escrow explained that Del Toro’s Demand was inaccurate AND that the borrower was only required to pay only the amount on the Demand. AMAZINGLY, Del Toro management quickly accepted responsibility and told us to expect a wire the following day (which we did). That’s integrity…

Blue Sky Capital

You are doing an excellent job in sorting out this rather complicated matter.

Bob Holt

Dear Drew,

I am very pleased with your help on our case. You were very knowledgeable and accessible when needed. I think that your identification of issues was helpful in obtaining a fair settlement of the case. I would highly recommend you to any persons with a need for an expert witness in the note/deed of trust /securities law field.